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Sinclair Television tightens spread on $400 million term loan B
By Paul A. Harris
Portland, Ore., April 3 - Sinclair Television Group Inc. tightened the spread on its $400 million term seven-year loan B to Libor plus 225 basis points from earlier spread talk of 250 bps to 275 bps, a market source said on Wednesday.
The OID of 99.75 was also eliminated; the loan is now priced at par.
Recommitments are due on Thursday.
Unchanged are the 0.75% Libor floor and the 101 soft call for six months.
The new $1 billion credit facility (Baa3/BB+) also features a $100 million five-year revolver and a $500 million five-year term loan A.
Price talk on the term loan A is Libor plus 225 basis points with no Libor floor.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal, and Deutsche Bank Securities Inc. and RBC Capital Markets are co-arrangers.
Proceeds will be used to refinance existing bank debt via an amendment and restatement to raise the new term loan and revolving commitments and to introduce increased incremental loan capacity, increased television station acquisition capacity and increased flexibility under negative covenants.
Other funds for the refinancing will come from $600 million of senior notes.
In addition, the new term loans, cash on hand and/or a draw under the new revolver are expected to be used to fund the acquisitions of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million and four television stations owned by COX Media Group for about $99 million.
The acquisitions are expected to close in the second quarter, so about $445 million of the new term loans are expected to be delayed draw.
Sinclair is a Hunt Valley, Md.-based television broadcasting company.
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